Home > General Topics > Economics > I just got turned down for a secured loan!

I just got turned down for a secured loan!

  1. Went to the bank yesterday to get a loan and just found out today it was denied. So...i have a 700 fico, no credit card debt , no car payment, house has 20% equity and to top it all off, I was securing the loan with an equal amount of cash in THEIR bank.

    So there was no risk to the bank and only profit to be made by them, but I was still turned down. This is how scared they are to make loans. They are hording their cash which I think is the reason the dollar is pounding all of the currencies. All that money is not in circulation, its being horded by the banks and I think that until that rate cut comes, the dollar is only going to pound those currencies more, and even then we dont know if they are going to start lending again.

    I'm starting to wonder now though, if is it indeed fear that is making them horde their cash, or are they trying to gain strength in the dollar, then use that strength to buy banks in other countries on the cheap?
  2. Perhaps you can find a way to express your opinions in the marketplace, by placing trades, taking risk, and (it is hoped) reaping rewards -- when the future unfolds in the way that you have bet. Good luck and happy trading!
  3. there was an economist on TV saying there was no writing in the bail out package that the banks need to use that money to lend to customers (main street ) . He said they are going to keep the cash to make there balance sheet look good so there stock will go up and make shareholders happy. They might even use the money to buy other smaller banks .

    Who could of thought they screw main street ? We get screwed again and thats what capitalism is all about. We need the govt to look out for the middle class or wall street will screw us again .

    Go Obama !!!!!
  4. 700 FICO isn't so hot these days. You need at least 750 to be considered a "Tier 1" borrower.
  5. you left out a very important number: dti ratio
    what is yours?

    with a fico of 700 you're below the median, and your score suggests a 90-day delinquency rate of 8%.

    btw what's the point of borrowing money that's secured by an equal amount of cash? did the loan specify that the cash would be used as a lien?
  6. Your borrowing the same amount that you have in "Cash" in the bank? Are you a fu#$ idiot?

    You are gona pay interest on a "Secured" loan?, You'r gona pay more money back for the amount of money that you have, in the bank.

    What logic is that, please explain it to me?
  7. not true
  8. Easy way to raise your credit score
  9. Hmm. Are you self-employed? They can get tough about that. Were you required to document income etc?

    I closed my home refi deal last night. I borrowed 665k on a 30-year fixed at 5.375% from my credit union. My credit rating was 785 (Experian). My loan to value was about 82%. Even though the refi requires PMI for a few years my payment dropped about $600.00 per month.

    The home is in S.Cal in an area that has dropped about 50% and about 20% of the homes are empty and going to auction. The credit union was pretty damned nervous about it but they finally coughed up the money.

    The messed up part is that the system is still way corrupt. The banks appraisor claimed my home appreciated 10% from its 2006 appraised value (wtf?). The appraisal was also totally bogus in that the closest comparitive property was 26 miles away and not even in the same valley as my home. Its like I'm in another real estate market and not the local market. So much for lending reform.

    You should try again with another institution as your numbers sound reasonable. You are the type of person they *need* right now, someone who pays his bills.

    good luck
  10. Neat post.

  11. at first I was going to ask if this was a joke...

    but then I realized we are all going through this Bush II nightmare, all wide awake.....

    so, what's down is up and what's up is down,

    and the stock market doesn't even know which direction to go in anymore....
  12. You're not naive enough to think we live in a democracy, are you pal?

    Read the bailout for yourself, it's public record. Prepare to be outraged. Get over it.
  13. Maybe he was using the loan for a non-essential purchase and did not want to deplete his emergency saving. Sounds responsible. Just a thought.
  14. Yes it is true! I know 2 bank managers and they both told me they won't consider any loan for people with a fico less than 740.

  15. Obama voted "Yea" for the bailout package too!!! Same for McCain. Your either voting for a turd sandwich or a giant douche. Have fun.
  16. Actually it does. You or I or anyone else just may not know which direction to take in it.

  17. Check out prosper.com. Borrow up to 25,000. I am a lender on there and if what you posted is true i have no problem funding part of that loan. Score 700 DTI 0 and good income shouldn't be a problem.
  18. Prosper doesnt loan anymore...they are in a quiet period, plus their interest rates a little high.
  19. Interest rates on secured loans are dirt cheap. About 3% over what the bank gives you. So if you put the money in a savings account at .5 you get a 3.5% interest rate on your loan. So lets say you put 100k in a saving account @ .5% interest and you get a loan for 100k at 3.5% interest for 5 years. Seems like you are losing money to the layman (THATS YOU!) But what I am really doing is keeping that loan for 2 years, then I throw that 100k(actually its 101k now with the interest i've accrued) into one of their CD's which pays 5%. Now i've already paid off 40k of the loan over 2 years so even though I will be paying 8% now for the next 3 years on the loan (unless they dont figure out what im doing and keep me at 3.5% which would be nice, but thats not what im trying for) Im getting 5% on the 100k and paying 8% on the 60k. If you do the math, you will see I actually make about 3500 dollars for getting this loan over the life of it. That means they basically paid ME $3500 to get a 0% interest loan.

    Sorry you are not smart enough in the world of finance to see how money works. No big deal...anyone with an "average" IQ like you would've made the same mistake.
  20. My score is low because I was sued back in 2002 and got a judgement against me. I have no deliquencies. I also just bought a house in august. DTI is 20.85%

  21. We do still give loans. Not to everyone. How it works if you are a member of a group we can and will fund any with credit worthiness. If the rate is too high then sorry. I wont lend either will my group in these times cheaper.
  22. it sounds like you're assuming rates will climb. you're locking in the loan @ 3.5% and hoping cd's will pay a couple of % points above that in order to recoup the loss you're incurring now. is that right?

    where did the 8% come from?

    if i understand you right, you're getting 5% on 100k, paying 8% on 60k and paying 3.5% on 40k. that's not a money-maker.

  23. You can get a loan at the rates posted jump all over it.
  24. I am about to close on a new home, have a FICO of about 785, and a little debt due to my son's college. I am still getting calls out of the blue from lenders, they were on me like stink on shit.

    It was extremely easy to get this loan, and the bonus is that the builder is hustling to please me as they are scared of walk-aways in this housing environment.

    There is, and never was, any credit problem for prime loans
  25. what's your prosper handle

    look at this poor bastard


    losing some 700,000$

    prosper is one big scam, which ripped off alot of lenders

    I am surprised no one is attempting to sue prosper, and hopefully get some money back in the process


  26. ... We also now learn that because of this incident Wandschneider, the Pepsi Cola executive and father of three, is no longer employed at Pepsi Bottling Group. Company officials refuse to comment on whether he was fired or whether he resigned from his position which has a $6 million dollar annual salary. ...

    that is really sad, the guy lost his job for this bitch